Before a large group of Hornets employees, family and reportesr Wednesday, All-Star point guard Chris Paul formally signed a lucrative contract extension with the Hornets.

Ted Jackson / The Times-PicayuneNew Orleans Hornets Coach Byron Scott pats Chris Paul on the shoulder after praising him and his work ethic during a press conference announcing his contract extension at the New Orleans Arena.

"It's been a long time coming " Paul said at the midday press conference at the New Orleans Arena. "It's a very humbling experience...I truly love this city, everything about it. I never had any plans to leave."

"Our priorioty this summer was obviously that we get Chris Paul signed," Hornets owner George Shinn said. "The difference between a good player and a great player is character. I think without a doubt Chris Paul has character plus... We our honored to have you as the face and future of our franchise."

The team didn't announce the length of the extension or the money involved, but The Times-Picayune reported last week that it was for three years with a player option for a fourth.

Starting in 2009, when the deal goes into effect, Paul will average $15 million each season for the first three years before earning $23 million in the fourth if he does not opt out of the contract to become a free agent.

The signing is the second key extension the team has negotiated this offseason. Last month, Byron Scott, the reigning Coach of the Year, signed a two-year extension. Paul and Scott led the Hornets to their first division title and the deepest run in franchise history.

Paul, a first team All-NBA selection, led the Hornets to their first Southwest Division title and the No. 2 seed in the Western Conference before falling in seven games to the San Antonio Spurs in the second round of the playoffs. Paul paced the league in assists (11.6 apg) and steals (2.7 spg), becoming the first player since John Stockton (1992) to lead the NBA in both categories the same season. He also averaged a team-high 21.1 points per game.

Paul said signing a three-year extension instead of a five-year extension just seemed to be the best decision to make after doing research and talking to his friends, LeBron James and Dwayne Wade.

"I think we're going to be fine for the future," he said.

General Manager Jeff Bower said he looks forward to building on this signing. "It's a big day for us."

"It's never been about money with Chris," Scott said. "It's about winning. That's been his M.O. from day one. He's in a handful of guys that are all about winning... That's why at 23 years old he's the best point guard in the NBA."

He added: "It's not about making the playoffs anymore. We want to win a championship. It's all about winning when it comes to Chris Paul. That's the bottom line."